EVN AG — Earnings Release 2016

Dec 13, 2016

EVN conference callAnnual results 2015/16

13 December 2016

• Increase in electricity generation by 20.1%
• Lower renewable generation due to lower wind and water flows
• Higher demand for network stabilisation in Austria and Germany
• Operating improvements due to higher energy business results
• New contract for four turn-key wastewater projects in Croatia and Macedonia
• Increase in EBITDA and Group net result
• Decrease of net debt and gearing due to strong operating cash flow
• Dividend proposal to 88th Annual General Meeting: EUR 0.42 per share for the 2015/16 financial year

Key financials 2015/16

	2 0 6 1 5 / 1	/– +
	E U Rm	%
R e v e n u e	2, 0 4 6. 6	-4 2
E B I T D A	6 0 4. 4	3. 6
d D i i i i t t t e p r e c a o n a n a m o r s a o n	-2 6 6. 1	-2 3
f f f i i E t t t t e c s r o m m p a r m e n e s s	-7 7. 9	-4 2. 3
E B I T	2 6 0. 4	-2 9
i i l l F t n a n c a r e s s u	-6 1. 6	-2 1
l G t t r o u p n e r e s u	1 5 6. 4	5. 6
f f h l N t e c a s o w r o m
i i i i t t t o p e r a n g a c v e s	4 6 3. 0	-3 2
	E U R
h E i a r n n g s p e r s a r e	0. 8 8	5. 7

Revenue below previous year

• Lower revenue from mild winter in Bulgaria and liberalisation steps in SEE
• Higher revenue from thermal generation and Austrian network business

Increase in EBITDA

• Lower electricity purchases and primary energy expenses
• Reduction of operating expenses

Impairment testing

• Energy generation plants
• EUR 77.9m negative effect on EBIT

Increase in Group net result

Solid balance sheet structure, reduced net debt

• Improvement of equity ratio to 42.3% (30 September 2015: 39.8%)
• Reduction of net debt to EUR 1,121.5m (30 September 2015: EUR 1,230.9m)
• Gearing decreased to 40.5 % (30 September 2015: 47.5%)

EBITDA development by segments

Conference Call FY 2015/16 Results

Generation

	2 0 1 5 / 1 6	/– +
l i i i l E t t t e c r c y g e n e r a o n v o u m e s	h G W	%
l T t o a	5, 1 0 5	2 4. 8
b l R e n e a e e n e r g s o r c e s w y u	1, 6 2 6	-2 8
h l T e r m a e n e r g y s o u r c e s	3, 4 7 9	4 4. 0

	2 0 6 1 5 / 1	/– +
i i l f F n a n c a p e r o r m a n c e	E U Rm	%
R e v e nu e	2 2 1. 7	0 4.
E B I T D A	7 4. 1	7. 7
E B I T	4. 8	-

Increase in energy production

• Greater use of thermal power plants to support network stability
• Decline in renewable generation due to less favourable wind conditions

Improvement in EBITDA

Reduction in operating expenses

Increase in EBIT

Negative impact by impairment losses, which reflected less favourable estimates for the long-term development of electricity prices

Energy Trade and Supply

l l S t a e s v o u m e s o	2 0 6 1 5 / 1	/– +
d t e n c u s o m e r s	h G W	%
l i i E t t e c r c y	6, 4 1 0	-5 8
l N t a u r a g a s	0 9 8 5,	-2 7
H t e a	1, 8 9 8	3. 9

	2 0 1 5 / 1 6	/– +
l f i i F n a n c a p e r o r m a n c e	E U Rm	%
R e v e n u e	6 3. 4 4	6 -4
E B I T D A	-2 8. 3	-
E B I T	-4 5. 7	-

Energy sales

• Decline in electricity and natural gas sales volumes
• Increase in heat sales volumes

Decline in EBITDA and EBIT

Negative impact from creation of a provision for onerous contracts related to the marketing of EVN's own electricity production

k d b i i i N t t t e w o r s r u o n	2 0 6 1 5 / 1	/– +
l o m e s v u	h G W	%
l i i E t t e c r c y	8, 2 8 1	0. 1
1) l N t a u r a g a s	6, 2 6 1 1	8. 4
	2 0 1 5 / 1 6	/– +
i i l f F n a n c a p e r o r m a n c e	E U Rm	%
R e v e n u e	4 9 2. 9	4. 4
E B I T D A	2 2 0. 6	9. 7
E B I T	0. 3 1 1	1 5. 4

Network distribution volumes

• Substantial increase in natural gas network distribution volumes
• Electricity network distribution volumes at prior year level

Improvement in EBITDA and EBIT

Positive price and volume effects

Energy Supply South East Europe

1) i r c e s	+/– in %	d j A tm t us en
le ic i t ty e c r	-0 % 4	0 1. 0 8. 2 0 15
	0. 8 3 % +	0 1. 0 7. 2 0 1 6
he t a	2) 9 % -1
le ic i t ty e c r	% -0 3	0 1. 0 7. 2 0 15
	% -0 3	0 1. 0 7. 2 0 1 6
i n e s s	2 0 1 5 / 1 6	/– +
	G h W	%
io lu n vo m e s	4 5 0	-9 1
io lu n vo m e s	1 3, 4 0 3	-1 2
lu m e s	1 1, 8 8 2	-4 6
s	1 8 4	-1 2. 8
	2 0 6 1 5 / 1	/– +
m a n c e	EU Rm	%
	9 4 9. 7	-8 5
	1 2 9. 5	7. 2
	3 5. 4	-3 8. 8
	p s t t o e r

1) Average; household sector; according to regulators in Bulgaria and Macedonia

2)Step-by-step reduction as compared to level on 1 July 2015

Decline in revenue

• Decrease of electricity production in Macedonia (lower water flows)
• Lower energy demand due to unusually mild temperatures and liberalisation steps

Improvement in EBITDA, decline in EBIT

• Lower energy procurement costs (in correspondence with lower sales volumes)
• Operating improvements (reduction of network losses, improvement in collection of receivables, cost savings)
• Impairment effect related to Bulgarian heating business

Environmental Services

	2 0 1 5 / 1 6	/– +
l f i i F n a n c a p e r o r m a n c e	E U Rm	%
R e e n e v u	1 7 6. 8	2. 4
E B I T D A	5 3. 1	-3 5
E B I T	2 3 7.	6 -4
l l i i F t n a n c a r e s u s	-2 5	6 3 7.
l b f R i t t e s u e o r e n c o m e a x	2 4. 8	1 8. 0

Increase in revenue

Higher revenue from thermal waste incineration in Lower Austria and from international project business

Decrease in EBITDA and EBIT; increase in financial results

Absence of previous year's one-off effects from sale of sodium hypochlorite plant in Moscow

Cash flows

	2 0 1 5 / 1 6	/– +
	EU Rm	in %
f h low Gr os s c as	5 3 7. 9	2 2. 8
h f low fro Ne ing iv i ies t c t t t as m op er a a c	4 6 3. 0	-3 2
f fro h low inv ing iv i ies Ne t c t t t as m es a c	-2 3 0. 6	-
h f low fro f ina ing iv i ies Ne t c t t as m nc a c	-2 3. 9 5	2 8. 9
ha h d h Ne in t c ng e ca s an ca s
iva len ts eq u	-2 1. 5	-

Increase of operating cash flow

• Strong operating performance

• Changes in the cash flow from investing as well as financing activities influenced by last year's sale of sodium hypochlorite plant

• Group net result for 2016/17 is expected to remain largely stable

• Arbitral decision in favor of project company for the power plant Walsum ¹⁰
• An arbitral tribunal has awarded the project company claims in the amount of EUR 200 million
• Such arbitral decision will to a large extent result in a reduction of construction costs for the power plant
• Currently no material effects expected on EVN's Group net result in the 2016/17 financial year
• EVN's strategy remains unchanged
• EUR 1bn investment programme for networks, renewable generation and drinking water supplies to be continued
• Commitment to integrated business model

Additional information

Stefan Szyszkowitz, CFOPhone: +43 2236 200-12132E-mail:stefan.szyszkowitz@evn.at

Investor Relations:Gerald Reidinger

Phone: +43 2236 200-12698E-mail:gerald.reidinger@evn.at

Matthias Neumüller

Phone: +43 2236 200-12128E-mail:matthias.neumueller@evn.at

Doris Lohwasser

Phone: +43 2236 200-12473E-mail:doris.lohwasser@evn.at

Investor information on the web

www.evn.atwww.investor.evn.atwww.responsibility.evn.atE-mail: investor.relations@evn.at

EVN AG

HeadquartersEVN Platz2344 Maria Enzersdorf

Disclaimer

Certain statements made in this presentation may constitute "Forward-Looking Statements" within the meaning of the U.S. federal securities law. Forwardlooking information is subject to various known and unknown risks and uncertainties. These include statements concerning our expectations and other statements that are not historical facts.

The Company believes any such statements are based on reasonable assumptions and reflect the judgement of EVN's management based on factors currently known by it.

No assurance can be given that these forward-looking statements will prove accurate and correct, or that anticipated, projected future results will be achieved.

For additional information regarding risks, investors are referred to EVN's latest Annual report.